ACCA and IMA expect 3.5 per cent economic growth in Middle East in 2019
31 May 2019 Written by Admin AdminThe Global Economic Conditions Survey (GECS) shows that global economic confidence remained low in Q1 2019, despite rising for the first time in a year.
The Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA) said that they expect a 3.5 per cent economic growth in the Middle East in 2019.
Fazeela Gopalani, the Head of ACCA Middle East, said, “While confidence was especially weak in our region at the end of last year, we are seeing a really positive start to 2019 and in the first quarter confidence has rebounded abruptly.”
Economic growth in the region will be supported by the regulatory and fiscal landscape, especially in the UAE and Saudi Arabia markets, which continue to attract foreign direct investment (FDI) and have recently seen an increase in international acquisition such as the merger between UAE-based Careem and Uber.
“With the regional visions of Saudi Arabia and the UAE now in their implementation phases, the Middle East economy is set to grow at a positive rate after a general slowdown,” said Hanadi Khalife, Director, MEA and India operations at IMA.
GECS stated that the significant bounce in 2019 will be aided by the strong recovery in oil prices, however it remains to be seen how sustainable the rise in oil prices is given the slowing global economy, which is likely to exert downward pressure on prices.
Source: bankerme
Middle East financial industry accelerates digital transformation
25 May 2019 Written by Admin AdminUK-based Jupiter Asset Management said that the Middle East financial services industry is ready to adopt technology disruptions as rapid developments in financial technology, new regulations to improve transparency and the rise of digital savvy millennials support an irreversible global trend towards financial innovation.
Banks and financial institutions in the GCC region are showing considerable promise in adopting financial innovation as well as collaborating with fintech firms to digitalise operations and provide new solutions to customers.
Guy de Blonay, the Fund Manager at Jupiter Asset Management, said, “Across the Middle East, and particularly in the GCC, financial services providers are demonstrating a commitment to innovation, securing a number of partnerships with fintech providers as well as adopting the latest technologies from cybersecurity tools to payment platforms and working with regulators to increase access to new technologies.
Jupiter Asset Management stated that financial innovators in the UAE, Saudi Arabia and Bahrain, receives support from a Sandbox regulatory environment to facilitate the impact of new technologies as well as supporting firms in testing innovative solutions.
The establishment of fintech incubation programmes such as Dubai International Financial Centre’s (DIFC) FinTech Hive and the Saudi Arabian Monetary Authority’s (SAMA) Fintech Saudi, demonstrates the GCC bloc’s readiness to provide an environment for growth of emerging technology companies, added Jupiter Asset Management.
Additionally, the recent London IPO of Network International and Careem’s merger with Uber further highlights the region’s capacity to provide a fintech ecosystem for growth of world-leading technology firms.
Source: bankerme
Cleartrip and Flyin 2018 Travel Insights Report finds 110% increase in mobile bookings in GCC
29 Mar 2019 Written by Admin AdminWith the high smartphone penetration rates and large young population, the GCC region continued to experience strong growth in mobile transactions in 2018, according to the 2018 Travel Insights Report jointly released today by Cleartrip and Flyin. The market recorded a 110% increase in mobile bookings as they represented one-third of all transactions.
The 2018 Travel Insights Report provides a comprehensive overview of the online travel sector in the GCC, as well as highlights significant shifts in the market dynamics and consumer behavior.
The market saw variations in average airfares as well as travelers' preferences in destinations, trip duration, and payment methods. Key findings of the report covering the January-December period include the sustained expansion of the industry, the rising trend of mobile traffic in major cities, and the growing popularity of travel coupons among travelers.
Sameer Bagul, Executive Vice President & Managing Director, Cleartrip Middle East, said: “We are excited to launch the fourth edition of the Travel Insights Report on the region’s online travel sector. Offering an exclusive and deeper understanding of the underlying trends in the market and consumer behavior, our report has established itself as one of the most respected and trusted sources for insights into the industry. The actionable data we provide will help travellers to plan and book their trips efficiently and enable businesses to develop solutions that cater to the evolving needs and expectations of customers. We will continue to explore new ways to further enhance our comprehensive survey and look forward to releasing our H1 2019 Travel Insights Report.”
“With advancements in mobile technology making travel more accessible to the region’s growing population, the online travel industry is headed for a new phase of growth. As reflected in our study, travelers' preferences are constantly changing, and therefore, it has become imperative for online travel agents to make investments into newer technologies such as machine learning and utilizing block chain capabilities to drive bespoke personalization and superior user experience. When we launched our mobile Progressive Web App (PWA) in 2018 our conversion rates increased by 67% as we continue to help consumers seamlessly make their travel bookings,” Mr. Bagul added.
Changing payment method preferences
Even though credit card still remains the dominant payment method in the online travel market, debit card transactions are on the rise. In the Kingdom, which has seen a spike in the adoption and usage of debit card after its central bank, Saudi Arabian Monetary Authority (SAMA), enabled the country’s made cardholders for online shopping last year, travel bookings using debit cards surged 280% year-on-year (Y-o-Y) to account for 45% of all bookings. In the UAE credit card transactions dipped to 72% from 81% in the previous year and debit cards usage increased from 19% to 28%.
Growing mobile penetration
Owing to the rising popularity of digital wallets and mobile apps, mobile transactions are quickly gaining traction among travelers. In Saudi Arabia, which had the highest rate of Mobile Booking Penetration (MBP) in the region, mobile bookings accounted for 38% with a massive rise of 233% from the previous year. Meanwhile, the number of transactions made on mobile devices increased by 56% in the UAE, whereas Oman recorded the second highest MBP in the region at 34%. Among mobile bookings in the Kingdom iOS share was higher at 71% compared to Android devices share of 29%. The company expects this number to grow in 2019 as ApplePay™ was launched in Saudi Arabia earlier this year.
Mobile has become a popular channel for travel planning and booking in major cities in the region. Kuwait City and Riyadh had the highest rates of mobile traffic and bookings at 81% and 40% respectively. Bahrain, Muscat and Dubai were also among the leading markets for mobile visitors in the 2018 Travel Insights Report.
Trending destinations
Reflecting their growing appetite for novel experiences, the region’s discerning travellers made trips to a wide variety of destinations within the GCC and overseas. Islamabad, Lahore and Brussels topped the list of trending international destinations for travellers in the UAE, while domestic travellers in Saudi Arabia favoured Gizan, Abha and Ha’il. Meanwhile, Istanbul remained among the leading family travel destinations during both summer and winter seasons.
Airfares in a flux
As crude oil prices continued to fluctuate in 2018, the region’s leading markets saw significant changes in airfare pricing. Average ticket prices were 10% and 6% higher in Bahrain and Kuwait respectively, while Saudi Arabia experienced an overall price decline of 7% due to growth of low-cost carriers such as flyadeal. As some of the large airlines reduced capacity from Kuwait, it recorded the highest average fare per person at USD 281, while Oman had the lowest in the region at USD 192.
Some routes originating from the region have seen fluctuations in airfares last year. While Jeddah-Dubai recorded the highest increase at 25%, the Jeddah-Cairo route witnessed the greatest decline in airfares at 19%. In addition, micro-trips have taken off as a new trend in the region’s travel industry. Ha’il and Kuwait appeared to be the cheapest getaways from Riyadh and Dubai respectively last year.
The report also indicates that Sunday is the cheapest day for travel, whereas prices increase on Thursday. Furthermore, February is the ideal month for budget travellers with average fares falling 16%.
Sustained market growth
With lower airfares, increased connectivity and fewer travel barriers, the GCC continues to witness an increase in the number of travellers. In 2018, the industry posted a robust Y-o-Y growth of 7%, while Saudi Arabia emerged as the fastest growing market with a solid 10% expansion.
Source: menaherald
4 Ecommerce Trends to Watch Carefully for in 2019
As the online retail space grows ever more competitive, entrepreneurs will need to adapt.
Ecommerce enjoyed a record-breaking year in 2018, with global sales revenues estimated to have reached $2.8 trillion, according to Statista. This year, this figure is expected to rise to $3.5 trillion. To put this in perspective, if the ecommerce industry were a country, it would slot into the fifth spot, ahead of the United Kingdom, whose GDP as of April 2018 was $2.61 trillion.
With such eye-opening figures, it’s little wonder there’s so much excitement surrounding the future of online retail. Amid all the hype about ecommerce, it’s easy to forget that this segment accounts for just 11.9 percent of the total retail sales around the world. Therefore, the market holds an extraordinary capacity for growth over the next decade.
Below, I identify the four trends that ecommerce entrepreneurs should pay the closest attention to:
1. Smaller businesses using big data
Yes, we’ve heard quite a lot about big data over the past two years, but it’s not going away. As more people come to grips with this new resource, this effort will increasingly separate the successful from the less successful ecommerce businesses. And this division will not be limited to behemoth ecommerce businesses either, because mid-range competitors too are now using their data reserves to mine unique insights.
Big data, in fact, helps entrepreneurs analyze shopping behavior, trends and what products it is that are selling. It's been proven to help ecommerce businesses make improvements in customer service, security and mobile commerce. It also powers the AI which is revolutionizing the industry (more on this below).
In short, big data is likely to power future developments in your ecommerce business. If you are planning on staying in the industry long term, you would be wise to study the latest developments.
2. Excellent customer service
Shoppers are growing used to the convenience of ecommerce, and entrepreneurs need to ensure that the customer experience meets those people's growing expectations. The purchasing journey needs to be smooth, reassuring and secure. Stores also need to be quick to respond to queries and resolve issues.
One American Express study has found that more than half of Americans surveyed had canceled a purchase due to bad service. But take heart; you needn't be the entrepreneur on the other end of that type of transaction. Instead, there are a number of ways you can deliver outstanding customer service:
Ensure a smooth checkout: Too many ecommerce stores still have unnecessarily drawn-out checkouts. Consider whether you need any more than two stages, i.e., you can fill in the details on one page; then confirm those details and items on the next.
Be responsive: Whether it’s on social media or your website or via email or phone, your business should respond to any queries in a timely and professional manner. An increasing number of stores offer live chat on their sites, and the response of customers has been overwhelmingly positive.
Deliver a personalized experience: Use your customer’s browsing and purchase history to deliver a personalized shopping experience. This is something Amazon has turned into an art form in recent years, directing its customers to the products that are most relevant to them and that they are more likely to buy.
Listen to your customers: Be proactive in looking for feedback and asking your customers about their experience. By asking for feedback, you’ll shape a more holistic view of your business and how it is perceived. Don’t be afraid to address criticism, either, even if it’s in public. In this way, you'll identify your weaknesses and prove to customers that you take complaints seriously.
Above all, understand that providing excellent customer service is no longer a bonus for an ecommerce business. It’s now the norm.
3. Enhanced AI
Without good, well-ordered data, you will not be able to embrace the latest technologies that can drive revenue to your ecommerce store. AI is already evident in many ecommerce stores. Those automated live chatbots, advanced data analytics and inventory management tools? They are all powered by AI.
However, there are examples of stores taking it to the next level to deliver a highly personalized experience. Outdoor wear brand, The North Face, has recently unveiled a digitalized personal shopper which can guide customers to products. There are also voice search and mobile shopping, which enable people to shop on the move.
4. Improved personalization
One of the factors behind Amazon’s success is its advanced product recommendations algorithm, which drives up to 35 percent of the company’s total sales. Using the buyer’s shopping habits, interests and even browsing history, the ecommerce giant is able to promote the products the buyer is most likely to purchase.
Looking beyond Amazon, product recommendation engines have proven effective at delivering a personalized shopping experience and driving up revenue for stores. The key is to place those recommendations at optimum points in the purchasing process.
First, ensure you have recommended products visible to your shoppers on the home page or after the point that they sign in. Then, once they have added items to their basket, ensure you have suggested complementary items. You can also suggest items at checkout.
Final thoughts
Entrepreneurs who take the proactive approach, embrace the latest advances in tech and make use of data will reap the rewards in ecommerce. As AI becomes more mainstream, it is essential that ecommerce business owners take personalization to the next level. Simply having a product recommendation plugin is no longer enough; you need to be proactive and utilize tools in the right way, with well-curated data, to maximize their potential.
Source: entrepreneur
Bahrain Development Bank Closes US$100 Million Al Waha Fund To Support MENA Startups
01 Jan 2019 Written by Admin AdminIndicating a boost for the ecosystem, Bahrain Development Bank (BDB) has successfully closed its US$100 million venture capital “fund of funds” to support startups in Bahrain and across the MENA region. The Al Waha "fund of funds" is a definite mark for the growth of entrepreneurship in the region as it aims to support by providing capital to Bahraini startups, as well as attracting new funds in the region.
Last week, the Limited Partners (LPs) Advisory Committee met to strategize the fund’s direction and allocation of $35 million into a series of venture funds. Its LP's include Mumtalakat, National Bank of Bahrain, Batelco Group, Tamkeen and Bahrain Development Bank, among others, with BDB as the General Partner (GP) managing the fund.
Following the closure of the fund, H.E. Sheikh Mohammed bin Essa Al Khalifa, Chairman of the Al Waha Fund of Funds Advisory Committee commented on the progress made in the allocation of the capital raised. “One of the key constraints on the development of the startup and technology ecosystem in the region is lack of access to capital. This fund can help to make a significant difference to that challenge, enabling entrepreneurs to realize the potential of their ideas.”
With the Al Waha Fund of Funds along with the opening of fintech co-working space FinTech Bay and regulatory sandbox for fintech ventures to test out their concepts, entrepreneurs, the time is ripe to leverage initiatives enabling entrepreneurship.
Source: Entrepreneurship Middle East
Bahrain's King Fahd Causeway Authority (KFCA) said it has invited bids from qualified transaction advisory services consultancies for implementing the transitional phase of King Hamad
Causeway, a 25-km-long strategic artery linking the kingdom with Saudi Arabia to be built at an investment of $4 billion. The transitional phase is likely to take up to three years, during which a consultant will be charged with developing a partnership framework between the public and private sectors, conducting a financial feasibility study and preparing the legal framework, preliminary designs and technical features, said a statement from KFCA. (read more)
Swiss Business Council celebrates 20 years of trade cooperation with the UAE
01 Oct 2016 Written by Admin SAE
Translation from Middle East Business Magazine (Original text)
- UAE leads Gulf countries in terms of the value of Swiss imports
- Trade volume between Switzerland and the UAE reached up to nearly 33.6 billion dirhams in 2015
- Prestigious award for UAE nationals who have contributed to Swiss Business Council's support
Bahrain’s Prime Minister Prince Khalifa Bin Salman Al Khalifa has inaugurated the Dragon City, a Chinese shopping mall, on the island of Muharraq. The city was the fruitful outcome of the outstanding Bahraini-Chinese relations.
HRH Premier officially opened the mega project, which was built by Diyar Al Muharraq on a total land area of 115,000 square metres at a total cost of $100 million. It includes more than 360 wholesale and retail stores.
The opening of the City is a result of Bahrain’s reputation as a country with a successful investment environment, Prince Khalifa said at the opening ceremony.
The launch of new mega investment projects in the kingdom reflects the investors’ confidence in the strength of the Bahraini economy, Prince Khalifa was quoted by the Bahrain News Agency (BNA) as saying.
Such projects also consolidate the kingdom’s competitive potential in attracting more capital, which supports the government’s strategy that is aimed at diversifying its sources of income, he added.
About Dragon City:
At a total cost of $100 million, Dragon City is spread over a total land area of 115,000 square meters with a built up area of 56,000 square meters. It is the first of its kind development in Bahrain, which will offer unique wholesale and retail opportunities to local consumers, trade customers and tourists. Dragon City encompasses Dragon Mall and a themed "Dining Village".
The Mall design is influenced with Chinese architectural and cultural aspects incorporating over 360 commercial units for both retail & wholesale trade, and additionally a 4,500 square meter area designated for warehouses and a car park large enough to accommodate 1,500 cars.
Source: Bahrain News Agency http://www.bna.bh/portal/en/news/703455
